The State of Software Monetization
The State of Software Monetization survey is here. With the help of Vanson Bourne, Gemalto set out to understand the software monetization industry and sentiments of ISVs, intelligent device manufacturers and software consumers worldwide and what challenges they are facing. Interestingly enough, results reveal that enterprise software customer demands are evolving and software vendors and intelligent device manufacturers need to adopt flexible and adaptable software licensing and software packaging techniques in order to meet these needs and generate more revenue opportunities.
Conclusions gleaned from the survey are as follows:
ISVs are failing their customers
It is not the quality of their software that is an issue but their approach to flexibility on agreements and packaging. Flexibility is essential if ISVs want to stay ahead of the curve and react to new technology trends at the necessary speed. However, most decision makers admit that their organization is failing to provide the service enterprises require.
Organizations are not complying with license agreements as a direct result of poor license management and inflexibility
Inflexible software agreements are at the top of the list for causes of customer noncompliance with license agreements. But this is not the result of malice. Organizations are often unwittingly non-compliant due to their software vendor’s poor licensing management and failure to adapt their business models to suit customer needs. Many enterprises are left with little option but to circumvent agreements to enable them to react to customers’ expectations.
The impact of non-compliance on ISVs is considerable
Negative impacts include loss of revenue, intellectual property theft and strained relations with customers. ISVs’ failure to improve their software licensing and feature enablement may threaten long-term business viability.
Additional key findings include:
- Expectations from ISVs are high
- ISVs face software monetization challenges
- Enterprise software users are frustrated
- Licensing compliance remains a concern
To learn more about The State of Software Monetization survey, see our additional resources page that highlights deep-dive resources into the data collected:The State of Software Monetization